Financial crimes and fraud are on the rise as scammers are getting craftier with the ways that they extract information from unassuming victims. As of late, impersonating financial representatives from banks and government official workers like those of the IRS is second nature.
Lately crooks have been extracting information through channels like phone calls, emails, and even in-person interactions. That’s why it’s extremely important to know whether you’re giving the right person your sensitive information.
Here’s what a typical scam might look like:
The scammer will impersonate an IRS employee with aggressive and demanding tones in efforts to steal your information
State out phony IRS identification badge numbers
Ask for specific payment methods and information for debit/credit cards or wire transfers
Threaten to report you to the police, immigration officers, or other forms of law enforcement
Demand that you pay immediately, followed by threats
Ask for sensitive information regarding refunds, filing status, personal information (social security, personal identification numbers, etc.)
Come unannounced to your residency without first notifying you by letter or mail of a potential audit they will be conducting
Use alternate forms of communicating through social media, email, text messages, and calls (except to set up appointments or discuss audits after they communicate via mail)
These are common practices that scammers use today in trying to phish for your information. To get in the know, it is also important to look over the formal ways that the IRS will initiate contact if they need to speak to you for tax purposes.
How the IRS formally initiates communication:
They will let you know through mail administered through the U.S. Postal Service (these are called notices) if they plan on visiting homes or businesses for auditing purposes
If the taxpayer has outstanding federal tax debt, IRS will request that it be paid in full but provide a range of payment options
Verify their identity through the HSPD-12 card, a government-wide standard which verifies their credentials to be checked.
Never demand money on the spot
Send a letter for private debt collection through private collection agencies (PCA). Once prompted, the PCA will contact the taxpayer and identify themselves, asking for payment on behalf of the U.S. Treasury.
Taxpayers are given the freedom to exercise and get in the know of their rights when communicating with the IRS. The IRS has provided a list, expressed in a variation of languages (Spanish, Chinese, Korean, Russian, and Vietnamese) for the convenience and understanding of the reader.
https://www.irs.gov/taxpayer-bill-of-rights
When handling sensitive information, it is always important to be wary of the source that asks for it. After all, your life could change drastically the moment that sensitive information falls into the wrong hands. Make sure you stay vigilant in keeping your information safe and with verified sources.
Information from this article has been directly pulled from IRS.gov. For more information, please visit this website: https://www.irs.gov/newsroom/avoid-scams-know-the-facts-on-how-the-irs-contacts-taxpayers